Chapter 3 · 6 levels

Comparing groups and A/B tests

Conversion rates, lift, confidence intervals, p-values explained honestly, the two-proportion z-test, peeking, and how much traffic a test really needs, on Harbor & Pine's web sessions.

Start

“Did the new page work?” is the question analysts hear most after “how much did we sell?”. Answering it means comparing two groups, and comparing groups means deciding how much of a difference is real and how much is noise.

This chapter works on web_sessions: 40,000 visits to Harbor & Pine’s site, each with a device, a traffic source and whether it ended in an order (converted). You start with the plain numbers, conversion rate and lift, then put an interval around a rate so you know how sure it is. You learn what a p-value says and what it does not, and run a z-test on a split where you know the true answer in advance: two halves of the same traffic, an A/A test.

Then the traps: checking a test every few days and stopping when it looks good, and starting a test that could never detect the effect you care about. The boss plans a real test for the marketing team and finds out what the store’s traffic can and cannot prove.

Levels

  1. Desktop versus mobile conversion

    from Daniel Foster, Mobile Product Manager

    conversion rate, lift, relative difference, proportions

    Code Difficulty 2 of 5 Not started

  2. How sure is the mobile rate?

    from Daniel Foster, Mobile Product Manager

    confidence interval, standard error, proportions, margin of error

    Code Difficulty 3 of 5 Not started

  3. What p = 0.03 actually says

    from Lauren Hayes, Email Marketing Manager

    p value, null hypothesis, statistical significance, effect size

    Quiz Difficulty 3 of 5 Not started

  4. Test the test with an A/A split

    from Priya Shah, Head of Data

    z test, a a test, p value, pooled proportion, standard error

    Code Difficulty 4 of 5 Not started

  5. The test that won by peeking

    from Priya Shah, Head of Data

    peeking, false positive, stopping rules, a a test

    Quiz Difficulty 3 of 5 Not started

  6. Boss: plan the banner test

    from Jordan Reyes, Head of Marketing

    sample size, power, minimum detectable effect, baseline rate, test duration

    Boss · 3 steps Difficulty 4 of 5 Not started

Pick what may run on this site. You can change this any time from "Cookie settings" at the bottom of every page.